This article first appeared on GuruFocus .
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Consolidated Revenue:$47.2 million, up 27% year-over-year.
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Consolidated Net Revenue:$13.6 million, up 35% year-over-year.
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Consolidated Adjusted EBITDA:$0.9 million profit, improved from a $1.9 million loss in the prior year quarter.
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US Appraisal Revenue:$33.7 million, up 26% year-over-year.
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US Appraisal Adjusted EBITDA:$3.6 million, up 41% year-over-year.
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US Title Revenue:$5.1 million, up 127% year-over-year.
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US Title Adjusted EBITDA Loss:$0.4 million, improved from a $2.1 million loss in the prior year quarter.
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Canadian Revenue:$8.4 million, consistent with the prior year.
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Canadian Net Revenue Margin:Record high of 19.9%.
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Cash Position:$41.7 million with no debt as of March 31, 2026.
Release Date: May 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Real Matters Inc ( RLLMF ) reported a 27% year-over-year increase in consolidated revenues, reaching $47.2 million.
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The company achieved a 35% increase in consolidated net revenue, amounting to $13.6 million.
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Real Matters Inc ( RLLMF ) launched seven new clients in the second quarter, including a major nonbank servicer in the US Title segment.
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US Appraisal origination transaction volumes increased by 22% year-over-year, demonstrating strong market performance.
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The company posted its strongest consolidated adjusted EBITDA results in seven quarters, with a profit of $0.9 million, a significant improvement from a $1.9 million loss in the prior year quarter.
Negative Points
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US Title segment reported an adjusted EBITDA loss of $400,000, although this was an improvement from the previous year's loss.
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Net revenue margins in the US Appraisal segment decreased by 170 basis points year-over-year due to transaction volume distribution.
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Operating expenses in the US Title segment increased by 12% year-over-year, driven by additional hires and salary increases.
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The Canadian market experienced a decline in mortgage market volumes, impacting revenue growth.
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The company is reaching capacity limits in its title business, necessitating further investment to onboard new clients and scale operations.
Q & A Highlights
Q: How many of the recent client wins in the title segment are influenced by Real Matters' existing relationships in the appraisal segment? A: Brian Lang, CEO, explained that a significant portion of new sales in the title segment are indeed from existing appraisal clients. The company leverages its strong performance in the appraisal business to cross-sell to the title platform. However, they are also targeting new clients, such as nonbank servicers, which are outside their appraisal client base.
Q: When Real Matters wins new clients, are they typically replacing internal systems or other vendors? A: Brian Lang, CEO, noted that for top 100 banks, they are often replacing existing competitors. For nonbank servicers, they might be adding external vendors to complement internal systems, especially as refinance volumes fluctuate, prompting clients to seek additional capacity.
Q: What scale of revenue can the current investments support, and what are the expected margins in the title segment post-investment? A: Brian Lang, CEO, stated that the target operating model is driven by volume. The company is focused on bringing in new clients and expanding market share. As volumes increase, they expect to see continued growth in title volumes, even if market conditions fluctuate. The goal is to maintain net revenue margins between 60% and 65%, with improvements in adjusted EBITDA margins as investments are made.
Q: How is the pipeline for title and appraisal segments reacting to the current market environment? A: Brian Lang, CEO, reported a healthy pipeline, particularly in the title segment, with several RFPs in progress. The company expects to continue closing opportunities in the second half of the year. In the appraisal segment, the focus remains on gaining market share and maintaining top performance on lender scorecards.
Q: Are there any regulatory changes that could impact Real Matters' business? A: Brian Lang, CEO, mentioned that while there is a lot of discussion around affordability and mortgage accessibility in the U.S., nothing has been enacted that would significantly impact their business. Most legislative efforts are seen as tailwinds, aiming to improve affordability and increase homeownership.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
